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HomeMy WebLinkAboutAgenda - 11-15-2016 - 7-a - School Impact Fee Updates 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 15, 2016 Action Agenda Item No. 7-a SUBJECT: School Impact Fee Updates DEPARTMENT: Planning and Inspections ATTACHMENT(S): INFORMATION CONTACT: (919) 1. Breakeven Analyses (Two Scenarios) Craig Benedict, Planning Director, 245- 2. Proposed Ordinance —Assumes 50/50 2592 Multi-Family Bedroom Split in Perdita Holtz, Planner III, 245-2578 Breakeven Analysis 3. Proposed Ordinance —Assumes 75/25 Multi-Family Bedroom Split in Breakeven Analysis 4. E-Mail from Stakeholders and Staff Response PURPOSE: To consider adoption of updated school impact fee levels and amendments to the General Code of Ordinances — Educational Facilities Impact Fees. BACKGROUND: Since 1993, Orange County has levied school impact fees to help defray the public costs of new development. The fee is charged once to all new residential development in both school districts. Fees charged must be proportional to the actual impact caused which is the reason a technical study is completed; the data-based study determines the proportional impact of housing types and the "maximum supportable impact fee" (MSIF) that can be charged for each type of housing. Proceeds from school impact fees can be used only to increase student membership capacity (e.g., Capital Facilities — new or expanded school buildings) in the school district in which the fee was collected. School impact fee proceeds cannot be used to fund operations or repairs of existing facilities. It should be noted that people's housing choices over time can change and those choices are reflected in the data used in the technical studies. Variance from study-to-study is to be expected due to demographic and housing trends that are captured in the data. Impact fees are paid once (when units are constructed) and cover the entire life of each housing unit. Housing often displays a cyclical nature of occupancy through the decades that a unit exists. This is one of the reasons school impact fee studies necessarily consider the entire housing stock when determining student generation rates; the entirety of the housing stock provides a reasonable snapshot in time of how all units will be occupied during their existence. Additionally, redevelopment projects of existing housing units do not pay additional impact fees unless the number of new units exceeds the number of existing units, in which case impact fees are due only on the number of new units that exceeds the existing number (e.g., 200 housing units being 2 redeveloped into a project that contains 250 new units would pay impact fees only on the 50 additional units). The Board of County Commissioners has extensively discussed the results of the 2016 studies and possible fee updates at four meetings since September. Meeting materials and videos of the meetings are posted at: http://www.orangecountync.gov/departments/board of county commissioners/index.php Meeting dates were: • September 6, 2016 • September 29, 2016 • October 4, 2016 • October 18, 2016 In the interest of keeping this agenda item as short as possible, all available previous information is not included with this abstract but is available to interested persons who view the previous meeting materials and videos. Additionally, the full studies and other information are posted at: http://www.orangecountync.gov/departments/planning and inspections/current interest project s.php At the October 18 meeting, the Board voted (5-2) on the preference for charging school impact fees based on bedroom counts, when applicable. The Board also deferred an adoption decision to give staff time to meet with representatives of three interested groups (the Homebuilders Association of Durham, Orange, and Chatham Counties; the Triangle Apartment Association; and the Chapel Hill-Carrboro Chamber of Commerce) who spoke at the meeting and also to conduct an additional breakeven analysis based on different assumptions from the analysis that was completed for the October 18 meeting. County staff met with representatives of various organizations on October 26 and the group sent an email with their comments on November 1. The e-mail and staff responses are included in Attachment 4. Some of the ideas presented by the stakeholders have been incorporated into the potential ordinances in Attachments 2 and 3. Details of the breakeven analyses are included in Attachment 1. The analyses differ in the multi-family bedroom split projections as follows: • A 50/50 multi-family bedroom split (0-2 bedrooms/3+ bedrooms) yields a breakeven point of 37% of the MSIF. Note that some stakeholders who attended the meeting on October 26 have indicated this bedroom split is not likely, particularly in the Chapel Hill — Carrboro district; expectation that more 0-2 bedroom units will be constructed than 3+ bedroom units. • A 75/25 multi-family bedroom split (0-2 bedrooms/3+ bedrooms) yields a breakeven point of 43% of the MSIF. Note that some stakeholders have indicated this bedroom split may still be on the high side for 3+ bedroom units. Staff notes that if this indication is correct, the starting point of the MSIF would need to be higher if the County wishes to "breakeven" on school impact fee collections the first year. The breakeven analyses are based on the construction assumptions included in Attachment 1. If actual construction differs significantly from assumptions, actual impact fee amounts collected would be different (either higher or lower, depending on actual construction activity). 3 When updated impact fees were last adopted in 2008, the initial fee amount was set at a level (32% of the 2008 MSIF) expected to collect $1.6 million in the Chapel Hill — Carrboro district in order to reach the amount budgeted for debt service in that district. The "breakeven point" was not calculated in 2008 (i.e., the MSIF percentage point was based on budget needs). Additionally, a four-year implementation period was adopted since the starting point of 32% of the MSIF provided a very low partial cost recovery. The fee started at 32% of the MSIF on January 1, 2009 and moved to 40%, 50%, and 60% each January 1 of subsequent years, completing the annual increases in 2012. The proposed Ordinances (Attachments 2 and 3) include the section of the County's General Code of Ordinances that pertains to the Educational Facilities Impact Fee with proposed amendments shown in "track changes" format. Proposed amendments to this section of the Code of Ordinances include: • Adding definitions for the various housing types. • Updating the schedule of public school impact fees in Section 30-33. • Adding language in Section 30-33 that would require age restricted units that do not remain age restricted for at least 20 years be required to pay the difference between the age restricted fee paid and the non-age-restricted fee in effect at the time a unit is no longer age restricted. • Adding language in Section 30-35(e) clarifying under what conditions a refund would be issued if impact fees were reduced for a particular housing unit type. • Adding language in Section 30-38 to recognize conditional zoning, which was adopted in 2011 when the UDO was adopted. The proposed Ordinances differ as follows: • Attachment 2 is the Ordinance that assumes a multi-family bedroom split of 50/50 (0-2/3+ bedrooms) o Attachment 2 would adopt the impact fee levels at 37% of the MSIF, effective January 1, 2017 with an increase to 47% of the MSIF on January 1, 2018 and a final increase to 57% of the MSIF on January 1, 2019. • Attachment 3 is the Ordinance that assumes a multi-family bedroom split of 75/25 (0-2/3+ bedrooms) o Attachment 3 would adopt the impact fee levels at 43% of the MSIF, effective January 1, 2017 with an increase to 53%% of the MSIF on January 1, 2018 and a final increase to 63% of the MSIF on January 1, 2019. • The sole difference between the two Ordinances is the Schedule of Public School Impact Fees in Section 30-33, reflecting the information in the above bullets. The adopting Ordinance for both options contains language clarifying building permit application deadlines and by when a building permit would have to be issued in order to pay the 2016 fee levels (this is relevant for housing unit types that had a lower 2016 fee). This language is included to ensure that genuine projects are given ample time to go through the normal permitting process (which can include required revisions prior to permit issuance) while discouraging premature applications containing inadequate information but which are submitting for the purpose of beating fee increase deadlines. The version of the Ordinance presented at the October 18 BOCC meeting allowed 120 days to obtain a building permit. As a result of stakeholder comments, this timeframe has been extended to 180 days. Additionally, in response to stakeholder comments, staff has added 4 language to allow projects that have an approved Zoning Compliance Permit by January 1, 2017 and which apply for and receive building permits in the prescribed timeframes be permitted to pay the 2016 impact fee levels (this clause is relevant primarily to large multi-family projects). At the request of the Town, Orange County Planning staff made a presentation to the Chapel Hill Town Council on October 10, 2016. Comments made were primarily related to the effect of impact fees on housing affordability. Planning staff also presented to the Town of Carrboro's Board of Aldermen on October 25, 2016. Comments at Carrboro's meeting included: • Concern over the effect of the impact fees on housing affordability, including the idea that impact fees increase the resale prices (or rents) of existing housing. • Concern that an existing house could be demolished and replaced with a larger, more expensive house and no additional impact fees would be required. This also relates to concern about the potential negative impact on existing, more affordable neighborhoods. • Concern over social justice issues and equitability and the ideas that the old and new "formulas" should be better contextualized and how the affordability question manifests itself. • The idea that schools should be supported in a different way. Meeting materials and videos of these meetings are available on the Towns' websites. It should be noted that the adopted percentage of MSIF must be the same for all housing types (e.g., fees cannot be adopted at 40% MSIF for one housing type and 60% MSIF for a different housing type). Since 1995, Orange County has offered an impact fee reimbursement program for school impact fees paid on affordable housing units. From FY2009-10 through FY2015-16, $606,318 in collected impact fees was reimbursed for the 77 affordable single-family housing units and one apartment building containing 6 affordable multi-family units constructed in that time period. FINANCIAL IMPACT: Continued residential growth in both school districts is expected to result in school capital costs which can be recouped by charging new residential development for its proportional impacts on school facilities. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this agenda item: • GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental and commercial operations or policies. RECOMMENDATION(S): The Manager recommends that the Board: 1. Receive a presentation by staff; 2. Discuss the topic as desired; 3. Authorize finalization of the school impact fee study reports by the consultant (TischlerBise); and 4. Adopt one of the proposed Ordinances as follows: 5 a. Attachment 2 if the Board believes a 50/50 multi-family unit bedroom split projection is the more realistic projection. (Fees would begin at 37% of the MSIF). b. Attachment 3 if the Board believes a 75/20 multi-family unit bedroom split projection is the more realistic projection. (Fees would begin at 43% of the MSIF). c. Additionally, the BOCC can choose to adopt different MSIF percentage levels from those listed in the ordinances and/or a different phasing timeline. 6 Attachment 1 Maximum Supportable Impact Fee (MSIF) Summary The spreadsheets on the following pages show annual projected impact fee amounts at various MSIF levels for both the updated fee amounts and the current fee amounts, when both are calculated at estimated development levels (in order to "compare apples-to-apples"). The following table depicts the estimated development levels: Chapel Hill—Carrboro City School District Orange County School District Estimated 341 new units per year Estimated 398 new units per year Estimated Unit Types: Estimated Unit Types: 20%Single Family Detached 60%Single Family Detached 15%Single Family Attached 15%Single Family Attached 65% Multi Family 20% Multi Family 0%Manufactured Homes 5% Manufactured Homes Estimated Annual Number of Units: Estimated Annual Number of Units: • 60 Single Family Detached (assumed 50/50 • 230 Single Family Detached (assumed 50/50 split between 0-3 bedrooms and 4+ bedrooms split between 0-3 bedrooms and 4+bedrooms) in both scenarios) • 9 Single Family Detached <800 sq. ft. • 8 Single Family Detached <800 sq. ft. • 60 Single Family Attached (assumed 50/50 • 51 Single Family Attached (assumed 50/50 split between 0-2 bedrooms and 3+ bedrooms) split between 0-2 bedrooms and 3+ bedrooms) • 80 Multi Family(assumed 50/50 split between • 222 Multi Family(assumed 50/50 split 0-2 bedrooms and 3+ bedrooms in one between 0-2 bedrooms and 3+ bedrooms in scenario and a 75/25 split in the second one scenario and a 75/25 split in the second scenario) scenario) • 20 Manufactured Homes • 0 Manufactured Homes "Breakeven Points"(To collect approximately the same amount of revenue as generated with the current fee): • If assuming a 50/50 split in multi-family units' bedroom counts (0-2 bedrooms/3+ bedrooms), the collection "breakeven point" is estimated to be 37%of the MSIF. • If assuming a 75/25 split in multi-family units' bedroom counts (0-2 bedrooms/3+ bedrooms), the collection "breakeven point" is estimated to be 43%of the MSIF. By Bedroom Counts, if Applicable, Assume 50/50 Multi-family BR Split (0-2 BR/3+ BR) 7 Chapel Hill-Cambom,City Schools Current Fee (adopted at 60%of Single Fam ly Detached MSIF 90%MSIF 80%MSIF 70%MSIF 60%MSIF 57%MSIF 50%MSIF 47%MSIF 40%MSIF 37%MSIF 30%MSIF 20%MSIF 10%MSIF 0%MSIF 2007 MSIF) 0-3 BR $13,114 $11,803 $10,491 $9,180 $7,868 $7,475 $6,557 $6,164 $5,246 $4,852 $3,934 $2,623 $1,311 $0 $11,423 %Change from Current Fee 14.8% 3.3% -8.2% -19.6% -31.1% -34.6% -42.6% -46.0% -54.1% -57.5% -65.6% -77.0% -88.5% -100.0% 4+BR $25,139 $22,625 $20,111 $17,597 $15,083 $14,329 $12,570 $11,815 $10,056 $9,301 $7,542 $5,028 $2,514 $0 $11,423 %Change from Current Fee 120.1% 98.1% 76.1% 54.1% 32.0% 25.4% 10.0% 3.4% -12.0% -18.6% -34.0% -56.0% -78.0% -100.0% Projected Annual Collections, Updated Fee @ Projected Development Levels $1,147,590 $1,032,831 $918,072 $803,313 $688,554 $654,126 $573,795 $539,367 $459,036 $424,608 $344,277 $229,518 $114,759 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $1,142,300 $1,028,070 $913,840 $799,610 $685,380 $651,1111 $571,150 $536,8811 $456,920 $422,651 $342,690 $228,460 $114,230 $0 Single Family Detached<800 sq.ft. $3,848 $3,463 $3,078 $2,694 $2,309 $2,193 $1,924 $1,809 $1,539 $1,424 $1,154 $770 $385 $0 $11,423 %Change from Current Fee -66.3% -69.7% -73.1% -76.4% -79.8% -80.8% -83.2% -84.2% -86.5% -87.5% -89.9% -93.3% -96.6% -100.0% Projected Annual Collections, Updated Fee @ Projected Development Levels $30,784 $27,706 $24,627 $21,549 $18,470 $17,547 $15,392 $14,468 $12,314 $11,390 $9,235 $6,157 $3,078 $0 Projected Annual Collections, Current Fee @ Projected Development Levels 1 $152,307 $137,076 $121,845 $106,615 $91,3941 $86,815 $76,153 $71,584 $60,923 $56,353 $45,692 $30,4611 $15,231 $0 Single Family Attached 0-2 BR $10,266 $9,239 $8,213 $7,186 $6,160 $5,852 $5,133 $4,825 $4,106 $3,798 $3,080 $2,053 $1,027 $0 $6,610 %Change from Current Fee 55.3% 39.8% 24.2% 8.7% -6.8% -11.5% -22.3% -27.0% -37.9% 42.5% -53.4% -68.9% -84.5% -100.0% 3+BR $16,414 $14,773 $13,131 $11,490 $9,848 $9,356 $8,207 $7,715 $6,566 $6,073 $4,924 $3,283 $1,641 $0 $6,610 %Change from Current Fee 148.3% 123.5% 98.7% 73.8% 49.0% 41.59/ 24.2% 16.7 -0.7% % -25.5% -50.3% -75.2% -100.0% Projected Annual Collections, Updated Fee @ Projected Development Levels $677,266 $609,539 $541,813 $474,086 $406,360 $386,042 $338,633 $318,315 $270,906 $250,588 $203,180 $135,453 $67,727 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $561,850 $505,665 $449,480 $393,295 $337,110 $320,255 $280,925 $264,0701 $224,740 $207,885 $168,555 $112,370 $56,185 $0 Multifamil 0-2 BR $4,441 $3,997 $3,553 $3,109 $2,665 $2,531 $2,221 $2,087 $1,776 $1,643 $1,332 $888 $444 $0 $1,286 %Change from Current Fee 245.3% 210.8% 176.3% 141.7% 107.2% 96.8% 72.7% 62.3% 38.1% 27.8% 3.6% -30.9% -65.5% -100.0% 3+BR $18,914 $17,023 $15,131 $13,240 $11,348 $10,781 $9,457 $8,890 $7,566 $6,998 $5,674 $3,783 $1,891 $0 $1,286 %Chan a from Current Fee 929.5% 782.5% 73 1.3% 488. 2% 341.2% 0% Projected Annual Collections, Updated Fee @ Projected Development Levels $2,592,405 $2,333,165 $2,073,924 $1,814,684 $1,555,443 $1,477,671 $1,296,203 $1,218,430 $1,036,962 $959,190 $777,722 $518,481 $259,241 $0 Projected Annual Collections, Current Fee @ Projected Development Leves 1 $471,8201 $428,2381 $380,6561 $333,0741 $285,4921 $271,2171 $237,9101 $223,6351 $190,3281 $176,0531 $142,7461 $95,1641 $47,582 $0 Manufactured Home $6,9991 $6,2991 $5,5991 $4,8991 $4,1991 $3,9891 $3,5001 $3,2901 $2,8001 $2,3311 $2,1001 $1,400 $700 $0 $4,939 %Change from Current Fee 41.7%1 27.5%1 13.4% -0.8% -15.0% -19.2% -29.1% -33.4% -43.3% -52.8% -57.5% -71.7% -85.8% -100.0% Projected Annual Collections, Updated Fee @ Projected $0-additional manufactured homes are not expected in the CHCCS district. Development Levels N/A-assessed by Age Restricted Unit $756 $680 $605 $529 $454 $431 $378 $355 $302 $252 $227 $151 $76 $0 housing type %Change from Current Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category for age restricted units. Projected Annual Collections, Updated Fee @ Projected Expected annual number of units difficult to quantify.Past age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a period of time Development Levels (20 years minimum)(e.g.,current age restricted units are owned by entities that have rules in place but the rules are not recorded in restrictive covenants and/or homeowners association documents). TOTAL PROJECTED ANNUAL COLLECTIONS, Updated Fee $4,448,045 $4,003,241 $3,558,436 $3,113,632 $2,668,827 $2,535,386 $2,224,023 $2,090,581 $1,779,218 $1,645,777 $1,334,414 $889,609 $444,805 $0 TOTAL PROJECTED ANNUAL COLLECTIONS, Current Fee $2,332,277 $2,099,049 $1,865,821 $1,632,594 $1,399,366 $1,329,398 $1,166,138 $1,096,170 $932,911 $862,942 $699,683 $466,455 $233,228 $0 By Bedroom Counts, if Applicable, Assume 50/50 Multi-family BR Split (0-2 BR/3+ BR) 8 Orange County Schools Current Fee (adopted at 60%of Single Re IV Detached MSIF 90%MSIF 80%MSIF 70%MSIF 60%MSIF 57%MSIF 50%MSIF 47%MSIF 40%MSIF 37%MSIF 30%MSIF 20%MSIF 10%MSIF 0%MSIF 2007 MSIF( 0-38R $12,044 $10,840 $9,635 $8431 $7226 $6865 $6022 $5661 $4818 $4456 $3613 $2409 $1204 $0 $5,623 %Change from Current Fee 114.2% 92.8% 71.4% 49.9% 28.5% 22.1% 7.1% 0.72i -14.3% -20.7% -35.7% -57.2% -78.6% -100.0% 4+BR $895 $8057 $1,162 $6,266 $5,371 $5,103 $4,476 $4,207 $3,581 $3,312 $5,623 %Chan efrom Current Fee 59.2 .3% 27.4% 11.4% -4.5% -9.3% -20.4% -25.2% -36.3% Prolected Annual Collections, UPdatetl Fee @ Projected Devela ment Levels $2,414,W $2,173,086 $1,931,632 $1,690,178 $1,448,724 $1,376,288 $1,207,270 $1,134,834 $965,816 $893,380 $724,362 $482,908 $241454 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $2,155,483 $1,939,935 $1,724,387 $1,508,838 $1,293,290 $1,228,626 $1,077,742 $1,013,077 $862,193 $797,529 $646,645 $431,097 $215,548 $0 Single Family Detached<800 sq.ft. $3,317 $2 985 $2 654 $2 322 $1990 $1891 $1 659 $1 559 $1 327 $1 221 $995 $663 $332 $0 $5,623 %Chan efrom Current Fee -41.0% -46.9% -52.8% -58.7% -64.6% -66.4% -70.5% -72.3% -76.4% -78.2% -82.3% -88.2% -94.1% -100.0% Projected Annual Callectlom, Updated Fee @ Projected Development Levels $29853 $26868 $23882 $20897 $17912 $17016 $14927 $14031 $11941 $11046 $8956 $5971 $2985 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $84,345 $75,911 $67,476 $59,042 $50,607 $48,077 $42,173 $39,642 $33,738 $31,208 $25,304 $16,869 $8,435 $0 Single Fa IV Attached 0-2 OR $3,665 $3,299 9932 $2,566 $2,199 $2,089 $1,833 $1,723 $1,466 $1,356 $1100 $733 $367 $0 $1,743 %Change from Current Fee 110.3% 89.2% 68.2% 47.2% 26.2% 19.9% 5.1% -1.2% -15.9% -22.2% -36.9% -57.9% -79.0% -100.0% 3+BR $5558 $5002 $4,446 $3,891 $3,335 $3,168 $2,779 $2,612 $2,223 $2,056 $556 $0 $1,743 %Chan efrom Current Fee 87.0% 155.1% 123.2% 91.3% 81.8% 59.4% 49.9% 27.6% 18.07 -68.1% -100.0% Prolected Annual Collections, Updated Fee @ Projected Devela ment Levels $276 690 $249,021 $221,352 $193,683 $166,014 $157,713 $138,345 $130,044 $110,676 $102,375 $83,007 $55,338 $27,669 $0 Projected Annual Collectiom, Current Fee @ Prot ected Develo men,Levels $174,300 $156,870 $139,440 $122,010 $104,580 $99,351 $87,150 $81,921 $69,720 $64,491 $52,290 $34,860 $17,430 $0 Multifamil 0-2 OR $2656 $2,390 $2,125 $1,859 $1,594 $1,514 $1,328 $1,248 $1,062 $983 t$�9,720 $46,480.1 $266 $0 $1,743 %Change from Current Fee 52.4% 37.1% 21.9% 6.7% -8.6% -13.1% -23.8% -28.4% -39.0% -43.6% -84.8% -100.07 3+BR $20,677 $18,609 $16,542 $14,474 $12,406 $11,786 $10,339 $9,718 $8,271 $76 5 $2,068 $0 $1,743 %Chan efrom Current 67.7% 849.0% 730.4% 611.8% 576.2% 493.1 338 % 18.6% -100.0% Prolected Annual Collections, Updated Fee @ Prolected Develo ment Levels $933,320 $839,988 $746,656 $653,324 $559,992 $531,992 $466,660 $438,660 $373,328 $345328 4 $93,332 $0 Projected Annual Collections, Current Fee @ ProjMed Develo men,Levels $232,400 $209,160 $185,920 $162,680 $139,440 $132,468 $116,200 $109,228 $92,960 $85,988 0 $23,240 $0 Manufactured Nome $8,1271 $7,314 $6,502 $5,689 $4,876 $4,632 $4,064 $3,820 $3,251 $3,007 $2,438 1$1379835%3 $813 $0 $2,678 %Change from Current Fee 203.5% 173.1% 142.8% 112.4% 82.1% 73.0% 51.7% 42.6% 21.4% 12.3% -9.0% -69.7% Projected Annual Collections, Updated Fee @Projected Develo ment Levels $162,540 $146,286 $130,032 $113,778 $97,524 $92,648 $81,270 $76,394 $65,016 $60,140 $48,762 $16,254 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $89,267 $80,340 $71413 $62,487 $53,560 $50,882 $44,633 $41955 $35,707 $33,029 $26,780 94.463 $0 N/A-azsessed by Age Restricted Unit $623 $561 $498 $436 $374 $355 $312 $293 $249 $231 $187 $125 $62 $0 housing type %Chan a from Current Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category forage restricted units. Projected Annual Collections, Updated Fee @ Projected Expected annual number of units difficult to quantify.Pazt age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a period oftime(20 Develo ment Levels ears minimum e..,current age restricted units are owned b entities that have rules in Wce but the rules are not recorded in restrictive covenants and/or homeowners association documents. TOTAL PROJECTED ANNUAL COLLECTIONS, U dated Fee $3,816,943 $3,435,249 $3,053,554 $2,671,860 $2,290,166 $2175658 $1,908,472 $1,793,963 $1526777 $1412269 $1145,083 $763,389 $381694 SD TOTAL PROJECTED ANNUAL COLLECTIONS, Current Fee $2735795 $2,462,216 $2,188,636 $1915057 $1,641,477 $1559403 $1367898 $1285824 $1094318 $1012244 $820739 $547159 $269116 SD GRAND TOTAL,PROJECTED ANNUAL COLLECTIONS,Both School Districts, U dated Fee $8,264,988 $7,438,489 $6,611,990 $5,785,492 $4,958,993 $4,711,043 $4,132494 $3884544 $3305995 $3058046 $2479496 $1652998 $826499 $0 GRAND TOTAL,PROJECTED ANNUAL COLLECTIONS,Both School Districts, Current Fee $5,068,072 $4,561,265 $4,054,457 $3,547,650 $3,040,843 $2,888,801 $2,534,036 $2,381,994 $2,027,229 $1,875,187 $1,520,422 $11013,614 $502,344 $0 Variance from-MS IF U dated Fee 3,305,995 2,479,496 1,652,998 826,499 247,950) 826,499 1,074,448) 1,652,998 1,900,947 2,479,496 3,305,995 4,132,494 4,958,993 Variance from 60%MS: Current Fee 5,224,145 4,397,646 3,571,147 2,744,649 1,918,150 1,670,200 1,091,651 843,701 265,152 17203 561,34] 1,38],845 2,214,344 3,040,843 Breakeven% By Bedroom Counts, if Applicable, Assume 75/25 Multi-family BR Split (0-2 BR/3+ BR) 9 Chapel Hill-Cambom,City Schools Current Fee (adopted at 60%of Single Fam ly Detached MSIF 90%MSIF 80%MSIF 70%MSIF 63%MSIF 60%MSIF 53%MSIF 50%MSIF 43%MSIF 40%MSIF 30%MSIF 20%MSIF 10%MSIF 0%MSIF 2007 MSIF) 0-3 BR $13,114 $11,803 $10,491 $9,180 $8,262 $7,868 $6,950 $6,557 $5,639 $5,246 $3,934 $2,623 $1,311 $0 $11,423 %Change from Current Fee 14.8% 3.3% -8.2% -19.6% -27.7% -31.1% -39.2% -42.6% -50.6% -54.1% -65.6% -77.0% -88.5% -100.0% 4+BR $25,139 $22,625 $20,111 $17,597 $15,838 $15,083 $13,324 $12,570 $10,810 $10,056 $7,542 $5,028 $2,514 $0 $11,423 %Change from Current Fee 120.1% 98.1% 76.1% 54.1% 38.6% 32.0% 16.6% 10.0% -5.4% -12.0% -34.0% -56.0% -78.0% -100.0% Projected Annual Collections, Updated Fee @ Projected Development Levels $1,147,590 $1,032,831 $918,072 $803,313 $722,982 $688,554 $608,223 $573,795 $493,464 $459,036 $344,277 $229,518 $114,759 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $1,142,300 $1,028,070 $913,840 $799,610 $719,6491 $685,380 $605,419 $571,150 $491,189 $456,920 $342,690 $228,460 $114,230 $0 Single Family Detached<800 sq.ft. $3,848 $3,463 $3,078 $2,694 $2,424 $2,309 $2,039 $1,924 $1,655 $1,539 $1,154 $770 $385 $0 $11,423 %Change from Current Fee -66.3% -69.7% -73.1% -76.4% -78.8% -79.8% -82.1% -83.2% -85.5% -86.5% -89.9% -93.3% -96.6% -100.0% Projected Annual Collections, Updated Fee @ Projected Development Levels $30,784 $27,706 $24,627 $21,549 $19,394 $18,470 $16,316 $15,392 $13,237 $12,314 $9,235 $6,157 $3,078 $0 Projected Annual Collections, Current Fee @ Projected Development Levels 1 $152,307 $137,076 $121,845 $106,615 $95,9531 $91,384 $80,723 $76,1531 $65,492 $60,923 $45,692 $30,4611 $15,231 $0 Single Family Attached 0-2 BR $10,266 $9,239 $8,213 $7,186 $6,468 $6,160 $5,441 $5,133 $4,414 $4,106 $3,080 $2,053 $1,027 $0 $6,610 %Change from Current Fee 55.3% 39.8% 24.2% 8.7% -2.2% -6.8% -17.7% -22.3% -33.2% -37.9% -53.4% -68.9% -84.5% -100.0% 3+BR $16,414 $14,773 $13,131 $11,490 $10,341 $9,848 $8,699 $8,207 $7,058 $6,566 $4,924 $3,283 $1,641 $0 $6,610 %Change from Current Fee 148.3% 123.5% 98.7% 73.8% 56.4% 49.0% 31.6% 6.8% -0.7% -25.5% -50.3% -75.2% -100.0% Projected Annual Collections, Updated Fee @ Projected Development Levels $677,266 $609,539 $541,813 $474,086 $426,678 $406,360 $358,951 $338,633 $291,224 $270,906 $203,180 $135,453 $67,727 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $561,850 $505,665 $449,480 $393,295 $353,966 $337,110 $297,781 $280,925 $241,596 $224,7401 $168,555 $112,370 $56,185 $0 Multifamil 0-2 BR $4,441 $3,997 $3,553 $3,109 $2,798 $2,665 $2,354 $2,221 $1,910 $1,776 $1,332 $888 $444 $0 $1,286 %Change from Current Fee 245.3% 210.8% 176.3% 141.7% 117.6% 107.2% 83.0% 72.7% 48.5% 38.1% 3.6% -30.9% -65.5% -100.0% 3+BR $18,914 $17,023 $15,131 $13,240 $11,916 $11,348 $10,024 $9,457 $8,133 $7,566 $5,674 $3,783 $1,891 $0 $1,286 %Chan a from Current Fee 929.5% 826.6% 781.1% 6 % 341.2% 0% Projected Annual Collections, Updated Fee @ Projected Development Levels $1,781,917 $1,603,725 $1,425,534 $1,247,342 $1,122,608 $1,069,150 $944,416 $890,959 $766,224 $712,767 $534,575 $356,383 $178,192 $0 Projected Annual Collections, Current Fee @ Projected Development Leves 1 $475,8201 $428,2381 $380,6561 $333,0741 $299,7671 $285,4921 $252,1851 $237,9101 $204,6031 $190,3281 $142,7461 $95,1641 $47,582 $0 Manufactured Home $6,9991 $6,2991 $5,5991 $4,8991 $4,4091 $4,1991 $3,7091 $3,5001 $3,0101 $2,8001 $2,1001 $1,400 $700 $0 $4,939 %Change from Current Fee 41.7%1 27.5%1 13.4% -0.8% -10.7% -15.0% -24.9% -29.1% -39.1% -43.3% -57.5% -71.7% -85.8% -100.0% Projected Annual Collections, Updated Fee @ Projected $0-additional manufactured homes are not expected in the CHCCS district. Development Levels N/A-assessed by Age Restricted Unit $756 $680 $605 $529 $476 $454 $401 $378 $325 $302 $227 $151 $76 $0 housing type %Change from Current Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category for age restricted units. Projected Annual Collections, Updated Fee @ Projected Expected annual number of units difficult to quantify.Past age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a period of time Development Levels (20 years minimum)(e.g.,current age restricted units are owned by entities that have rules in place but the rules are not recorded in restrictive covenants and/or homeowners association documents). TOTAL PROJECTED ANNUAL COLLECTIONS, Updated Fee $3,637,557 $3,273,801 $2,910,046 $2,546,290 $2,291,661 $2,182,534 $1,927,905 $1,818,779 $1,564,150 $1,455,023 $1,091,267 $727,511 $363,756 $0 TOTAL PROJECTED ANNUAL COLLECTIONS, Current Fee $2,332,277 $2,099,049 $1,865,821 $1,632,594 $1,469,334 $1,399,366 $1,236,107 $1,166,138 $1,002,879 $932,911 $699,683 $466,455 $233,228 $0 By Bedroom Counts, if Applicable, Assume 75/25 Multi-family BR Split (0-2 BR/3+ BR) 10 Orange County Schools Current Fee (adopted at 60%of Single Re IV Detached MSIF 90%MSIF 80%MSIF 70%MSIF 63%MSIF 60%MSIF 53%MSIF 50%MSIF 43%MSIF 40%MSIF 30%MSIF 20%MSIF 10%MSIF 0%MSIF 2007 MSIF( 0-38R $12,044 $10,840 $9,635 $8431 $7588 $7226 $6383 $6022 $5179 $4818 $3613 $2409 $1204 $0 $5,623 %Change from Current Fee 114.2% 92.8% 71.4% 49.9% 34.9% 28.5% 430.0% 7.1% -7.9% -14.32i -35.7% -57.2% -78.6% -100.0% 4+BR $895 $8057 $1,162 $6,266 $5,640 $5,371 $4,745 $4,476 $3,849 $3,581 $5,623 %Chan efrom Current Fee 59.2 .3% 27.4% 11.4% 0.3% -4.5% 430.0% -20.4% -31.5% -36.3 Prolected Annual Collections, Updatt Fee@Projected Devela ment Levels $2,414,W $2,173,086 $1,931,632 $1,690,178 $1,521,160 $1,448,724 $1,279,706 $1,207,270 $1,038,252 $965,816 $724,362 $482,908 $241454 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $2,155,483 $1,939,935 $1,724,387 $1,508,838 $1,357,955 $1,293,290 $1,142,406 $1,077,742 $926,858 $862,193 $646,645 $431,097 $215,548 $0 Single Family Detached<800 sq.ft. $3,317 $2 985 $2,654 $2,322 $2,090 $1990 $1,758 $1 659 $1426 $1,327 $995 $663 $332 $0 $5,623 %Chan efrom Current Fee -41.0% -46.9% -52.8% -58.7% -62.8% -64.6% -68.7% -70.5% -74.6% -76.4% -82.3% -88.2% -94.1% -100.0% Projected Annual Callectlom, Updated Fee @ Projected Development Levels $29853 $26868 $23882 $20897 $18807 $17912 $15,822 $14,927 $12837 $11941 $8956 $5971 $2985 $0 Projected Annual Collections, Current Fee @ Projected Development Levels $84,345 $75,911 $67,476 $59,042 $53,137 $50,607 $44,703 $42,173 $36,268 $33,738 $25,304 $16,869 $8,435 $0 Single Fa IV Attached 0-2 OR $3,665 $3,299 9932 $2,566 $2,309 $2,199 $1,942 $1,833 $1,576 $1,466 $1100 $733 $367 $0 $1,743 %Change from Current Fee 110.3% 89.2% 68.2% 47.2% 32.5% 26.2% 11.4% 5.1% -9.6% -15.9% -36.9% -57.9% -79.0% -100.0% 3+BR $5558 $5002 $4,446 $3,891 $3,502 $3,335 $2,946 $2,779 $2,390 $2,223 $556 $0 $1,743 %Chan efrom Current Fee 87.0% 155.1% 123.2% 100.9% 91.3% 69.0% 59.4% 37.1% 27.6% -68.1% -100.0% Prolected Annual Collections, Updated Fee @ Projected Devela ment Levels $276 690 $249,021 $221,352 $193,683 $174,315 $166,014 $146,646 $138,345 $118,977 $110,676 $83,007 $55,338 27669 $0 Projected Annual Collectiom, Current Fee @ Prot ected Develo men,Levels $174,300 $156,870 $139,440 $122,010 $109,809 $104,580 $92,379 $87,150 $74,949 $69,720 $52,290 $34,860 $17,430 $0 Multifamil 0-2 OR $2656 $2,390 $2,125 $1,859 $1,673 $1,594 $1,408 $1,328 $1,142 $1,062 t16%720 $46,480.1 $266 $0 $1,743 %Change from Current Fee 52.4% 37.1% 21.9% 6.7% -4.0% -8.6% -19.2% -23.8% -34.5% -39.0% 784.8% -100.0% 3+BR $20,677 $18,609 $16,542 $14,474 $13,027 $12,406 $10,959 $10,339 $8,891 $8 27 5 $2,068 $0 $1,743 %Chan efrom Current Fee 1086.3% 967.7% 849.0% 730.4% 647.4% 611.8% 528.7% 493.1% 410.1% 374 18.6% -100.0% Prolected Annual Collections, Updated Fee @ Prolected Develo ment Levels $572,900 $515,610 $458,320 $401030 $360,927 $343,740 $303,637 $286,450 $246,347 $229160 0 $57,290 $0 Protected Annual Collections, Current Fee @ ProjMed Develo men,Levels $232,400 $209,160 $185,920 $162,680 $146,412 $139,440 $123,172 $116,200 $99,932, 0 $23,240 $0 Manufactured Nome $8,1271 $7,314 $6,502 $5,689 $5,120 $4,876 $4,307 $4,064 $3,495 $3,251 $2,438 1$1379835%3 $813 $0 $2,678 %Change from Current Fee 203.5% 173.1% 142.8% 112.4% 91.2% 82.1% 60.8% 51.7% 30.5% 21.4% -9.0% -69.7% -100.0% Projected Annual Collections, Updated Fee @Projected Develo ment Levels $162,540 $146,286 $130,032 $113,778 $102,400 $97,524 $86,146 $81,270 $69,892 $65,016 $48,762 $16,254 $0 Projected Annual Collectiom, Current Fee @ Projected Development Levels $89,267 $80,340 $71413 $62,487 $56,238 $53,560 $47,311 $44,633 $38,385 $35,707 $26,780 94.463 $0 N/A-azsessed by Age Restricted Unit $623 $561 $498 $436 $392 $374 $330 $312 $268 $249 $187 $125 $62 $0 housing type %Chan a from Current Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category forage restricted units. Projected Annual Collec,iom, Updated Fee @ Projected Expected annual number of units difficult to quantify.Pazt age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a period oftime(20 Develo ment Levels ears minimum e..,current a restricted units are owned b entities that have rules in Wce but the rules are not recorded in restrictive covenants and/or homeowners association documents. TOTAL PROJECTED ANNUAL COLLECTIONS, Updated Fee 1 $3,456,523 $3,110,871 $2,765,218 $2,419,566 $2,177,609 $2,073,914 $1831957 $1,728,262 $1,486,305 S1.382.609 $1,036,957 $691,305 $345 652 SD TOTAL PROJECTED ANNUAL COLLECTIONS, Current Fee $2,735,795 $2,462,216 $2,198,636 $1,915,057 $1,723,551 $1,641,477 $1,449,971 $1,367,898 $1,176,392 $1,094,318 $820,739 $547159 $269116 I GRAND TOTAL,PROJECTED ANNUAL COLLECTIONS,Both School Districts, U dated Fee $7,094,080 $6,384,672 $5,675,264 $4,965,856 $4,469,270 $4,256,448 $3,759,862 $3,547,040 $3,050,454 $2,837,632 $2,128,224 $1,418,816 $709,408 $0 GRAND TOTAL,PROJECTED ANNUAL COLLECTIONS,Both School Districts, Current Fee $5,068,072 $4,561,265 $4,054,457 $3,547,650 $3,192,885 $3,040,843 $2,686,078 $2,534,036 $2,179,271 $2,027,229 $1,520,422 $1,013,614 $502,344 SD Variance from 60%MSIF U dated Fee 2,837,632 2,128,224 1,418,816 709,408 212,822 496,586 709,408) 1,205,994 1,418,816 2,128,224 2,837,632 3,547,040 4,256,448 Variance from 60%MSIF Current Fee 4,053,237 3,343,829 2,634,421 1,925,013 1,428,427 1,215,605 719019 506,197 9611 203,211 912,619 1,622,02] 2,331,435 3,040,843 Breakeven% Attachment 2 11 Ordinance#: ORD-2016-033 AN ORDINANCE AMENDING CHAPTER 30, ARTICLE II - EDUCATIONAL FACILITIES IMPACT FEE OF THE ORANGE COUNTY CODE OF ORDINANCES WHEREAS, Orange County Chapter 460, House Bill 917 of the 1987 Session of the General Assembly of North Carolina authorized Orange County to provide by ordinance for a system of impact fees to help defray the costs to the County of constructing certain capital improvements, including schools, and WHEREAS, Orange County initially adopted educational facilities impacts fees in 1993 and has amended the ordinance from time-to-time to since 1993, and WHEREAS, to ensure impact fees remain proportional to actual impacts caused, the County initiated a technical study in 2015 to study the school impact fees and determine the "maximum supportable impact fee" that could be charged for various new housing types, and WHEREAS, said technical study was completed in August 2016, and WHEREAS, the County has held the required public hearing on the proposed amendments to Chapter 30, Article II of the Code of Ordinances and the impact fee studies. BE IT ORDAINED by the Board of Commissioners of Orange County that Chapter 30, Article II — Educational Facilities Impact Fee is hereby amended as depicted in the attached pages. BE IT FURTHER ORDAINED THAT persons submitting a building permit application prior to January 1, 2017 may choose to pay either the public school impact fee that was in effect for 2016 for the housing type(s) proposed in the application or the fee required by the updated public school impact fee schedule in the attached pages, provided the building permit is issued no more than 180 calendar days after the application submittal date. The fee for building permits issued more than 180 calendar days after the application submittal date shall be the fee listed in the updated impact fee schedule. BE IT FURTHER ORDAINED THAT projects for which a Zoning Compliance Permit has been issued prior to January 1, 2017 and for which a building permit application has been submitted prior to January 1, 2018 may choose to pay either public school impact fee that was in effect for 2016 for the housing type(s) proposed in the application or the fee required by the updated public school impact fee schedule in the attached pages, provided the building permit is issued no more than 180 calendar days after the application submittal date. The fee for building permits issued more than 180 calendar days after the application submittal date shall be the fee listed in the updated impact fee schedule. BE IT FURTHER ORDAINED THAT this ordinance be placed in the book of published ordinances and that this ordinance is effective upon its adoption. Upon motion of Commissioner , seconded by Commissioner , the foregoing ordinance was adopted this day of , 2016. I, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting 1 12 held on , 2016 as relates in any way to the adoption of the foregoing and that said proceedings are recorded in the minutes of the said Board. WITNESS my hand and the seal of said County, this day of , 2016. SEAL Clerk to the Board of Commissioners 13 ARTICLE II. - EDUCATIONAL FACILITIES IMPACT FEE Sec. 30-31. - Legislative findings. The Orange County Board of Commissioners makes the following legislative findings: (1) Orange County public school facilities are vital to the health, safety, welfare, and economic prosperity of Orange County; (2) That public school facilities in Orange County must be expanded in order to maintain current levels of service if new development is to be accommodated without decreasing current levels of service; (3) To finance the expansion of the public school facilities in Orange County necessary to maintain current levels of service while accommodating new residential growth, several methods of finance will be employed, one of which will require new residential development to pay an appropriate share of the reasonably anticipated new educational facilities in the form of school impact fees; and (4) These school impact fees will provide, in a reasonable manner, for the public health, safety, and welfare of persons residing within Orange County by providing a portion of the costs of new school facilities which bears a relationship to the benefits of the new school facilities to the new residential growth in Orange County. (Ord. of 6-7-1993, § 1, eff 7-1-1993) Sec. 30-32. - Definitions. For the purposes of this Ordinance, the following terms shall have the following definitions: Accessory Dwelling Unit. A dwelling unit located on the same lot as another dwelling unit and recognized as an accessory use by the local zoning code. Certificate of Occupancy. A certificate issued by Orange County or a municipality located therein allowing the occupancy or use of a dwelling unit and certifying that the building or structure has been constructed and will be used in compliance with all applicable codes and ordinances. Dwelling Unit. A room or group of rooms forming a single independent habitable unit with facilities used or intended to be used for living, sleeping, cooking, and eating by one family. Types of dwelling units include Manufactured Homes, Multifamily, Single Family Attached, and Single Family Detached. Each dwelling type may be Aqe Restricted or not. Dwelling Unit, Age Restricted Unit. A dwelling unit, regardless of type (detached, attached, multi- family, etc.), located in a development that restricts the number of units with occupants aged under 55 years old and whereby the age restriction is achieved by deed restrictions, homeowners association documents, and/or restrictive covenants. Dwelling Unit, Manufactured Home. A dwelling unit built in a factory in accordance with the federal Manufactured Home Construction and Safety Standards, commonly referred to as the `HUD' Code. Dwelling Unit, Multifamily. A group of dwelling units which share a common floor-to-ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling, but not otherwise defined as a Single Family Attached Dwelling Unit. Dwelling Unit, Single Family Attached. A group of dwelling units which share a common floor-to- ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling and in which all Page 1 14 units have a ground-floor living space. Units located above ground floor non-residential (i.e. retail or office) uses are not included in this definition. Dwelling Unit, Single Family Detached. . A dwelling unit which is neither a Manufactured Home Dwelling Unit, Accessory Dwelling Unit, or attached to other dwelling units (as with Multifamily or Single Family Attached). Feepayer. The person constructing or responsible for having constructed a new dwelling unit or new dwelling units. In the case of a mobile home, the person installing or responsible for having installed a new mobile home or new mobile homes. (Ord. of 6-7-1993, § 2, eff 7-1-1993) Sec. 30-33. - School impact fees imposed on new residential dwelling units. In addition to all other charges prescribed by ordinance or resolution now or hereafter in effect, there shall be public school impact fees charged to new residential dwelling units located within Orange County, and within the municipalities and their extraterritorial planning jurisdictions located within Orange County. No person may occupy any new residential dwelling unit until all applicable public school impact fees contained in the following schedule have been paid in full. No certificate of occupancy or other type of occupancy permit shall be issued for any new residential dwelling unit until the public school impact fees hereby required have been paid in full. Payment of such fees shall not relieve the feepayer from the obligation to comply with applicable land development regulations of Orange County or the municipalities located within Orange County. Schedule of Public School Impact Fees The amount of public school impact fee shall be as shown in the following tables: Chapcl Hill Carrboro City Schools District Effcctivc January 1, Effcctivc January 1, Effcctivc January 1, Effcctivc January 1, 2449 2010 2011 2012 Singlc Family n +, r $6,092 $7,616 $9,520 $11,123 e4 Singlc Family Attachcd $3,525 $1,106 $5,508 $6,610 Multifamily8 $1,072 $1,286 Manufacturcd $2,631 $3,293 $1,116 $1,939 Orangc County Schools District Page 2 15 Effective January Effective January Effective January Effective January 1, 2009 1, 2010 1, 2011 1, 2012 Single Family Detached 000 $3,719 $1,686 $5,623 Single Family Attached/ MultifamilyA $1,162 $1,153 $1,713 Manufactured Homes $1,128 $1,785 $2,232 $2,678 Chapel Hill-Carrboro City Schools District Dwelling Unit Type Fee Effective Fee Effective Fee Effective January 1, 2017 January 1, 2018 January 1, 2019 Single Family Detached, 0-3 $4,852 $6,164 $7,475 Bedrooms Single Family Detached, 4+ $9,301 $11,815 $14,329 Bedrooms Single Family Detached <800 sq. $1,424 $1,809 $2,193 ft. Single Family Attached, 0-2 $3,798 $4,825 $5,852 Bedrooms Single Family Attached, 3+ $6,073 $7,715 $9,356 Bedrooms Multifamily, 0-2 Bedrooms & Accessory Dwelling Units, 0-2 $1,643 $2,087 $2,531 Bedrooms Multifamily, 3+ Bedrooms & Accessory Dwelling Units, 3+ $6,998 $8,890 $10,781 Bedrooms Manufactured Home $2,331 $3,290 $3,989 Age Restricted Unit $252 $355 $431 Page 3 16 Orange County Schools District Dwelling Unit Type Fee Effective Fee Effective Fee Effective January 1, 2017 January 1, 2018 January 1, 2019 Single Family Detached, 0-3 $4,456 $5,661 $6,865 Bedrooms Single Family Detached, 4+ $3,321 $4,207 $5,103 Bedrooms Single Family Detached <800 sq. $1,227 $1,559 $1,891 ft. Single Family Attached, 0-2 $1,356 $1,723 $2 089 Bedrooms Single Family Attached, 3+ $2,056 $2,612 $3,168 Bedrooms Multifamily, 0-2 Bedrooms & Accessory Dwelling Units, 0-2 $983 $1,248 $1,514 Bedrooms Multifamily, 3+ Bedrooms & Accessory Dwelling Units, 3+ $7,650 $9,718 $11,786 Bedrooms Manufactured Home $3,007 $3,820 $4,632 Age Restricted Unit $231 $293 $355 New residential dwelling units qualifying for the age restricted impact fee must remain age restricted for a minimum period of 20 years after the impact fee is paid. The owner of any age restricted dwelling unit changed to a non-age-restricted unit before the 20-year period expires shall be required to pay the difference between the age restricted impact fee paid and the impact fee in effect for the dwelling unit type at the time of the change. (Ord. of 6-7-1993, § 3, eff 7-1-1993; Amend. of 6-5-1995, eff 7-1-1995; Amend. of 6-26-1996, eff 7-1-1996; Amend. of 6-25-2001, eff 7-1-2001; Amend. of 12-11-2008, eff 1-1-2009, 6-1- 2009, 1-1-2011, and 1-1-2013) Sec. 30-34. - Public school impact fee exceptions. Public school impact fees as provided in Section 30-33 shall not be imposed in the following circumstances: (1) Buildings or structures, including alterations, repairs, renovations or additions thereto, which are to be occupied and used solely for non-residential purposes. (2) Residential dwelling units for which a building permit was obtained prior to the effective date of this Ordinance. (3) Alterations, repairs, renovations or additions to a residential dwelling unit. (4) Replacement of a building, structure or mobile home used for residential purposes, including the following: Page 4 17 a. Installation of a replacement mobile home on a separate lot or mobile home park space when an educational facilities impact fee for such lot or space has been previously paid pursuant to this Ordinance or where a residential mobile home legally existed on such lot or space on or before the effective date of this Ordinance. For the purposes of this Ordinance, "legally existed" shall mean that a mobile home was located on the lot or space during the five-year period prior to the date of adoption of this Ordinance. b. Replacement of a building, structure or mobile home damaged, destroyed or partially destroyed by: the exercise of eminent domain; human acts, such as riot, fire, accident, explosion; or flood, lightning, wind or other natural calamity, with a new building, structure or mobile home. A residential building, structure or mobile home may be replaced with a new building, structure or mobile home of the same or dissimilar dwelling type. For example, a mobile home may be replaced with a mobile home. Likewise, a mobile home may be replaced with a stick-built structure. In either case, however, the number of dwelling units may not be increased. (5) Accessory buildings and structures, including, but not limited to, garages, decks, storage buildings, and similar structures, provided they are not used for residential purposes. (6) Temporary buildings and structures, provided they are not used for residential purposes. However, public school impact fees shall not be levied in the following cases: a. A mobile home being used to provide custodial care under the provisions of an approved Special Use Permit. b. A mobile home being used as a temporary residential dwelling during the installation of a replacement mobile home or the construction of a stick-built dwelling unit. (Ord. of 6-7-1993, § 4, eff 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995) Sec. 30-35. -Collection of fees. (a) Creation of public school benefit area trust funds. Public school impact fees collected by Orange County pursuant to this Ordinance shall be kept separate from other revenue of the County. There shall be one trust fund established for each of the benefit areas. The benefit areas correspond to the school district boundaries as determined by the School Districts and as illustrated on the attached map labeled Public School Benefit Areas. (b) Responsibility for fee collection. (1) All public school impact fees are due to Orange County and shall be paid to Orange County prior to a certificate of occupancy being issued for a dwelling unit. The fees will be collected by Orange County and/or by interlocal agreement between Orange County and a municipality located therein. All public school impact fees shall be properly identified by the appropriate benefit area and transferred for deposit in the appropriate trust account. (2) Where there is an interlocal agreement in effect for collection of the public school impact fees by a municipality, the municipality shall remit the fees to Orange County as provided in the agreement, including a report of the amount of funds collected and the benefit area from which the fees were collected. Upon receipt, the County shall deposit the fees in the appropriate trust fund. (c) Limitation on expenditure of funds. Funds withdrawn from public school impact fee trust accounts shall be used solely in accordance with the following provisions: (1) Funds shall be used for capital costs associated with the construction of new public school space, including new buildings or additions to existing buildings or otherwise converting existing buildings into new public school space where the expansion is related to new residential growth. Such capital costs include actual building construction; design, engineering, and/or legal fees; Page 5 18 land acquisition and site development; equipment and furnishings; infrastructure improvements; and/or debt service payments and payments under leases through which to finance such costs. (2) Funds shall be used exclusively for capital improvements within the benefit area from which the funds were collected. (3) Funds may be used for providing reimbursements as permitted in subsection (e)of this Section. (4) No funds shall be used for public school operating expenses, periodic or routine maintenance, or the administration of this public school impact fee program. (5) Following their collection, funds shall be expended within ten (10) years, the time frame coinciding with the public school facilities capital improvements program (CIP)school impact fee period. The disbursal of public school impact fee funds shall require the approval of the Board of County Commissioners upon recommendation of the County Manager. (d) Interest on fees. Any public school impact fee funds on deposit and not immediately necessary for expenditure shall be invested as allowed in N.C. General Statute 159-30 for other public moneys. All income derived shall be deposited in the applicable trust fund. (e) Reimbursement of fees. (1) Any funds not expended within the time frame established in subsection (c)(5) of this Section. shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d)of this Section. (2) If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to an updated school impact fee study that results in changes to impact fee levels charged, no refund of previously paid fees shall be made. If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to reasons other than an updated school impact fee study, the difference between the old and new fees shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d)of this Section. If the Schedule of Public School Impact Fees as contained in Section 30-33 is increased, no additional fees shall be collected from new construction for which certificates of occupancy have been issued. (3) Where an impact fee has been collected erroneously, or where an impact fee has been paid, and the feepayer subsequently files for and is granted an exception as permitted in Section 30- 34, the fee shall be returned to the feepayer. (f) Annual report. A report shall be made to the Board of County Commissioners each year showing where public school impact fees have been collected, what projects have been constructed with such fees, and what reimbursements have been made. The report shall also include an evaluation of this Ordinance, including its effectiveness and enforcement, and the methods and data used to calculate the Schedule of Public School impact Fees contained in Section 30-33. The Board of County Commissioners shall review the report to determine if, within each benefit area, all areas of new construction are being benefited by the fees. If the Board of County Commissioners determines that areas of new construction are not being benefited, then it shall readjust the capital improvements program to correct this condition. If, after review of the methods and data used to calculate the Schedule of Public School Impact Fees, the Board of County Commissioners determines that adjustments are required in the Schedule, then it shall direct the County Manager and staff to prepare a report which outlines recommended changes for its consideration. (Ord. of 6-7-1993, § 5, eff 7-1-1993; Amend. of 6-5-1995, eff 7-1-1995; Amend. of 6-26-1996, eff 7-1-1996) Page 6 19 Sec. 30-36. -Credits. (a) Any conveyance of land for a public school site or construction of new school facilities received and accepted by Orange County, a municipality located in Orange County, and/or the Orange County or Chapel Hill-Carrboro School Board from a landowner may, at the election of the landowner, be credited against the public school impact fee due if the conveyance or construction meets the same needs as the public school impact fee in providing new public school facilities. If the landowner elects to receive credit against the amount of the public school impact fee due for such conveyance or construction, the landowner shall, prior to the agreement to convey land for or construct new public school facilities, or the conveyance of land for or construction of new school facilities, enter into a fee agreement with the County. The fee agreement shall provide for the establishment of credits and payment of the fee in a specified manner and time, and shall, upon its execution by the landowner and the County, be binding upon the heirs and assigns of the landowner. (b) The value of land conveyed or facilities constructed by a landowner and accepted by the County, municipality or school board for purposes of this Section shall be determined by an appraisal based on the fair market value of the land or facilities as established by the County. Construction shall be in accordance with applicable County, municipal, school board, and State standards. Any land conveyed for credit under this Section shall be conveyed no later than the time at which public school impact fees are required to be paid. The portion of the public school impact fee represented by a credit for construction shall be deemed paid when the construction is completed and accepted for maintenance or when adequate security for the completion of the construction has been provided. (Ord. of 6-7-1993, § 6, eff 7-1-1993; Amend. of 6-26-1996, eff 7-1-1996) Sec. 30-37. - Penalties. (a) In addition to any other remedy allowed by N.C. General Statute 153A-123, the failure to pay a public school impact fee is hereby declared to subject the person responsible for payment of the public school impact fee to a civil penalty. The amount of the penalty shall be equal to the amount of the unpaid school impact fee, plus an interest charge of one-half percent (1/2%) per month compounded monthly and a service charge of one hundred dollars ($100.00). (b) The County may assess this penalty against the landowner whereon new construction has occurred without payment of the public school impact fee. However, no service charge will be assessed when the County staff has made an error in the fee determination. Furthermore, no penalty shall be assessed until the person or persons alleged to be in violation are served by registered mail, certified mail - return receipt requested, or personal service with notice to pay. (c) The County Attorney is hereby authorized to institute a civil action in the name of Orange County in the appropriate division of the General Court of Justice in Orange County for recovery of the penalty. All moneys recovered shall be deposited in the appropriate trust fund. (Ord. of 6-7-1993, § 7, eff 7-1-1993) Sec. 30-38. - Legal status provisions. (a) All ordinances and clauses in conflict herewith are hereby repealed to the extent of said conflict. If any clause or Section of this Ordinance or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or application of this ordinance which can be given separate effect, and, to this end, the provisions of this Ordinance are declared to be severable. I (b) This Ordinance shall not diminish any prior contractual, conditional zoning, or special or conditional use district zoning obligation to pay for or install road, park or other improvements required by Orange County or a municipality located therein, nor shall the fulfillment of those obligations diminish Page 7 20 any applicable public school impact fee owed to the County. This Ordinance shall not diminish any prior obligation of the County or a municipality located therein to reimburse persons for road, parks or other improvements, nor shall the fulfillment of those obligations by the County or a municipality diminish any applicable credit owed to the feepayer. (Ord. of 6-7-1993, § 8, eff 7-1-1993) Secs. 30-39-30-70. -Appeal to the Orange County Board of Adjustment [Reserved]. Sec. 30-80. - Effective date. This Ordinance shall be effective from and after the 1st day of July, 1993. This Ordinance shall only apply to residential dwelling units for which building permits are issued on and after the effective date of the Ordinance or any amendment thereto. (Ord. of 6-7-1993, eff 6-7-1993) Page 8 Attachment 3 21 Ordinance#: ORD-2016-034 AN ORDINANCE AMENDING CHAPTER 30, ARTICLE II - EDUCATIONAL FACILITIES IMPACT FEE OF THE ORANGE COUNTY CODE OF ORDINANCES WHEREAS, Orange County Chapter 460, House Bill 917 of the 1987 Session of the General Assembly of North Carolina authorized Orange County to provide by ordinance for a system of impact fees to help defray the costs to the County of constructing certain capital improvements, including schools, and WHEREAS, Orange County initially adopted educational facilities impacts fees in 1993 and has amended the ordinance from time-to-time to since 1993, and WHEREAS, to ensure impact fees remain proportional to actual impacts caused, the County initiated a technical study in 2015 to study the school impact fees and determine the "maximum supportable impact fee" that could be charged for various new housing types, and WHEREAS, said technical study was completed in August 2016, and WHEREAS, the County has held the required public hearing on the proposed amendments to Chapter 30, Article I I of the Code of Ordinances and the impact fee studies. BE IT ORDAINED by the Board of Commissioners of Orange County that Chapter 30, Article II — Educational Facilities Impact Fee is hereby amended as depicted in the attached pages. BE IT FURTHER ORDAINED THAT persons submitting a building permit application prior to January 1, 2017 may choose to pay either the public school impact fee that was in effect for 2016 for the housing type(s) proposed in the application or the fee required by the updated public school impact fee schedule in the attached pages, provided the building permit is issued no more than 180 calendar days after the application submittal date. The fee for building permits issued more than 180 calendar days after the application submittal date shall be the fee listed in the updated impact fee schedule. BE IT FURTHER ORDAINED THAT projects for which a Zoning Compliance Permit has been issued prior to January 1, 2017 and for which a building permit application has been submitted prior to January 1, 2018 may choose to pay either public school impact fee that was in effect for 2016 for the housing type(s) proposed in the application or the fee required by the updated public school impact fee schedule in the attached pages, provided the building permit is issued no more than 180 calendar days after the application submittal date. The fee for building permits issued more than 180 calendar days after the application submittal date shall be the fee listed in the updated impact fee schedule. BE IT FURTHER ORDAINED THAT this ordinance be placed in the book of published ordinances and that this ordinance is effective upon its adoption. Upon motion of Commissioner , seconded by Commissioner , the foregoing ordinance was adopted this day of , 2016. I, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting 1 22 held on , 2016 as relates in any way to the adoption of the foregoing and that said proceedings are recorded in the minutes of the said Board. WITNESS my hand and the seal of said County, this day of , 2016. SEAL Clerk to the Board of Commissioners 23 ARTICLE II. - EDUCATIONAL FACILITIES IMPACT FEE Sec. 30-31. - Legislative findings. The Orange County Board of Commissioners makes the following legislative findings: (1) Orange County public school facilities are vital to the health, safety, welfare, and economic prosperity of Orange County; (2) That public school facilities in Orange County must be expanded in order to maintain current levels of service if new development is to be accommodated without decreasing current levels of service; (3) To finance the expansion of the public school facilities in Orange County necessary to maintain current levels of service while accommodating new residential growth, several methods of finance will be employed, one of which will require new residential development to pay an appropriate share of the reasonably anticipated new educational facilities in the form of school impact fees; and (4) These school impact fees will provide, in a reasonable manner, for the public health, safety, and welfare of persons residing within Orange County by providing a portion of the costs of new school facilities which bears a relationship to the benefits of the new school facilities to the new residential growth in Orange County. (Ord. of 6-7-1993, § 1, eff 7-1-1993) Sec. 30-32. - Definitions. For the purposes of this Ordinance, the following terms shall have the following definitions: Accessory Dwelling Unit. A dwelling unit located on the same lot as another dwelling unit and recognized as an accessory use by the local zoning code. Certificate of Occupancy. A certificate issued by Orange County or a municipality located therein allowing the occupancy or use of a dwelling unit and certifying that the building or structure has been constructed and will be used in compliance with all applicable codes and ordinances. Dwelling Unit. A room or group of rooms forming a single independent habitable unit with facilities used or intended to be used for living, sleeping, cooking, and eating by one family. Types of dwelling units include Manufactured Homes, Multifamily, Single Family Attached, and Single Family Detached. Each dwelling type may be Aqe Restricted or not. Dwelling Unit, Age Restricted Unit. A dwelling unit, regardless of type (detached, attached, multi- family, etc.), located in a development that restricts the number of units with occupants aged under 55 years old and whereby the age restriction is achieved by deed restrictions, homeowners association documents, and/or restrictive covenants. Dwelling Unit, Manufactured Home. A dwelling unit built in a factory in accordance with the federal Manufactured Home Construction and Safety Standards, commonly referred to as the `HUD' Code. Dwelling Unit, Multifamily. A group of dwelling units which share a common floor-to-ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling, but not otherwise defined as a Single Family Attached Dwelling Unit. Dwelling Unit, Single Family Attached. A group of dwelling units which share a common floor-to- ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling and in which all Page 1 24 units have a ground-floor living space. Units located above ground floor non-residential (i.e. retail or office) uses are not included in this definition. Dwelling Unit, Single Family Detached. . A dwelling unit which is neither a Manufactured Home Dwelling Unit, Accessory Dwelling Unit, or attached to other dwelling units (as with Multifamily or Single Family Attached). Feepayer. The person constructing or responsible for having constructed a new dwelling unit or new dwelling units. In the case of a mobile home, the person installing or responsible for having installed a new mobile home or new mobile homes. (Ord. of 6-7-1993, § 2, eff 7-1-1993) Sec. 30-33. - School impact fees imposed on new residential dwelling units. In addition to all other charges prescribed by ordinance or resolution now or hereafter in effect, there shall be public school impact fees charged to new residential dwelling units located within Orange County, and within the municipalities and their extraterritorial planning jurisdictions located within Orange County. No person may occupy any new residential dwelling unit until all applicable public school impact fees contained in the following schedule have been paid in full. No certificate of occupancy or other type of occupancy permit shall be issued for any new residential dwelling unit until the public school impact fees hereby required have been paid in full. Payment of such fees shall not relieve the feepayer from the obligation to comply with applicable land development regulations of Orange County or the municipalities located within Orange County. Schedule of Public School Impact Fees The amount of public school impact fee shall be as shown in the following tables: Chapcl Hill Carrboro City Schools District Effcctivc January 1, Effcctivc January 1, Effcctivc January 1, Effcctivc January 1, 2449 2010 2011 2012 Singlc Family n +, r $6,092 $7,616 $9,520 $11,123 e4 Singlc Family Attachcd $3,525 $1,106 $5,508 $6,610 Multifamily8 $1,072 $1,286 Manufacturcd $2,631 $3,293 $1,116 $1,939 Orangc County Schools District Page 2 25 Effective January Effective January Effective January Effective January 1, 2009 1, 2010 1, 2011 1, 2012 Single Family Detached 000 $3,719 $1,686 $5,623 Single Family Attached/ MultifamilyA $1,162 $1,153 $1,713 Manufactured Homes $1,128 $1,785 $2,232 $2,678 Chapel Hill-Carrboro City Schools District Dwelling Unit Type Fee Effective Fee Effective Fee Effective January 1, 2017 January 1, 2018 January 1, 2019 Single Family Detached, 0-3 $5,639 $6,950 $8,262 Bedrooms Single Family Detached, 4+ $10,810 $13,324 $15,838 Bedrooms Single Family Detached <800 sq. $1,655 $2,039 $2,424 ft. Single Family Attached, 0-2 $4,414 $5,441 $6,468 Bedrooms Single Family Attached, 3+ $7,058 $8,699 $10,341 Bedrooms Multifamily, 0-2 Bedrooms & Accessory Dwelling Units, 0-2 $1,910 $2,354 $2,798 Bedrooms Multifamily, 3+ Bedrooms & Accessory Dwelling Units, 3+ $8,133 $10,024 $11,916 Bedrooms Manufactured Home $3,010 $3,709 $4,409 Age Restricted Unit $325 $401 $476 Page 3 26 Orange County Schools District Dwelling Unit Type Fee Effective Fee Effective Fee Effective January 1, 2017 January 1, 2018 January 1, 2019 Single Family Detached, 0-3 $5,179 $6,383 $7,588 Bedrooms Single Family Detached, 4+ $3,849 $4,745 $5,640 Bedrooms Single Family Detached <800 sq. $1,426 $1,758 $2,090 ft. Single Family Attached, 0-2 $1,576 $1,942 $2,309 Bedrooms Single Family Attached, 3+ $2,390 $2,946 $3,502 Bedrooms Multifamily, 0-2 Bedrooms & Accessory Dwelling Units, 0-2 $1,142 $1,408 $1,673 Bedrooms Multifamily, 3+ Bedrooms & Accessory Dwelling Units, 3+ $8,891 $10,959 $13,027 Bedrooms Manufactured Home $3,495 $4,307 $5,120 Age Restricted Unit $268 $330 $392 New residential dwelling units qualifying for the age restricted impact fee must remain age restricted for a minimum period of 20 years after the impact fee is paid. The owner of any age restricted dwelling unit changed to a non-age-restricted unit before the 20-year period expires shall be required to pay the difference between the age restricted impact fee paid and the impact fee in effect for the dwelling unit type at the time of the change. (Ord. of 6-7-1993, § 3, eff 7-1-1993; Amend. of 6-5-1995, eff 7-1-1995; Amend. of 6-26-1996, eff 7-1-1996; Amend. of 6-25-2001, eff 7-1-2001; Amend. of 12-11-2008, eff 1-1-2009, 6-1- 2009, 1-1-2011, and 1-1-2013) Sec. 30-34. - Public school impact fee exceptions. Public school impact fees as provided in Section 30-33 shall not be imposed in the following circumstances: (1) Buildings or structures, including alterations, repairs, renovations or additions thereto, which are to be occupied and used solely for non-residential purposes. (2) Residential dwelling units for which a building permit was obtained prior to the effective date of this Ordinance. (3) Alterations, repairs, renovations or additions to a residential dwelling unit. (4) Replacement of a building, structure or mobile home used for residential purposes, including the following: Page 4 27 a. Installation of a replacement mobile home on a separate lot or mobile home park space when an educational facilities impact fee for such lot or space has been previously paid pursuant to this Ordinance or where a residential mobile home legally existed on such lot or space on or before the effective date of this Ordinance. For the purposes of this Ordinance, "legally existed" shall mean that a mobile home was located on the lot or space during the five-year period prior to the date of adoption of this Ordinance. b. Replacement of a building, structure or mobile home damaged, destroyed or partially destroyed by: the exercise of eminent domain; human acts, such as riot, fire, accident, explosion; or flood, lightning, wind or other natural calamity, with a new building, structure or mobile home. A residential building, structure or mobile home may be replaced with a new building, structure or mobile home of the same or dissimilar dwelling type. For example, a mobile home may be replaced with a mobile home. Likewise, a mobile home may be replaced with a stick-built structure. In either case, however, the number of dwelling units may not be increased. (5) Accessory buildings and structures, including, but not limited to, garages, decks, storage buildings, and similar structures, provided they are not used for residential purposes. (6) Temporary buildings and structures, provided they are not used for residential purposes. However, public school impact fees shall not be levied in the following cases: a. A mobile home being used to provide custodial care under the provisions of an approved Special Use Permit. b. A mobile home being used as a temporary residential dwelling during the installation of a replacement mobile home or the construction of a stick-built dwelling unit. (Ord. of 6-7-1993, § 4, eff 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995) Sec. 30-35. -Collection of fees. (a) Creation of public school benefit area trust funds. Public school impact fees collected by Orange County pursuant to this Ordinance shall be kept separate from other revenue of the County. There shall be one trust fund established for each of the benefit areas. The benefit areas correspond to the school district boundaries as determined by the School Districts and as illustrated on the attached map labeled Public School Benefit Areas. (b) Responsibility for fee collection. (1) All public school impact fees are due to Orange County and shall be paid to Orange County prior to a certificate of occupancy being issued for a dwelling unit. The fees will be collected by Orange County and/or by interlocal agreement between Orange County and a municipality located therein. All public school impact fees shall be properly identified by the appropriate benefit area and transferred for deposit in the appropriate trust account. (2) Where there is an interlocal agreement in effect for collection of the public school impact fees by a municipality, the municipality shall remit the fees to Orange County as provided in the agreement, including a report of the amount of funds collected and the benefit area from which the fees were collected. Upon receipt, the County shall deposit the fees in the appropriate trust fund. (c) Limitation on expenditure of funds. Funds withdrawn from public school impact fee trust accounts shall be used solely in accordance with the following provisions: (1) Funds shall be used for capital costs associated with the construction of new public school space, including new buildings or additions to existing buildings or otherwise converting existing buildings into new public school space where the expansion is related to new residential growth. Such capital costs include actual building construction; design, engineering, and/or legal fees; Page 5 28 land acquisition and site development; equipment and furnishings; infrastructure improvements; and/or debt service payments and payments under leases through which to finance such costs. (2) Funds shall be used exclusively for capital improvements within the benefit area from which the funds were collected. (3) Funds may be used for providing reimbursements as permitted in subsection (e)of this Section. (4) No funds shall be used for public school operating expenses, periodic or routine maintenance, or the administration of this public school impact fee program. (5) Following their collection, funds shall be expended within ten (10) years, the time frame coinciding with the public school facilities capital improvements program (CIP)school impact fee period. The disbursal of public school impact fee funds shall require the approval of the Board of County Commissioners upon recommendation of the County Manager. (d) Interest on fees. Any public school impact fee funds on deposit and not immediately necessary for expenditure shall be invested as allowed in N.C. General Statute 159-30 for other public moneys. All income derived shall be deposited in the applicable trust fund. (e) Reimbursement of fees. (1) Any funds not expended within the time frame established in subsection (c)(5) of this Section. shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d)of this Section. (2) If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to an updated school impact fee study that results in changes to impact fee levels charged, no refund of previously paid fees shall be made. If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to reasons other than an updated school impact fee study, the difference between the old and new fees shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d)of this Section. If the Schedule of Public School Impact Fees as contained in Section 30-33 is increased, no additional fees shall be collected from new construction for which certificates of occupancy have been issued. (3) Where an impact fee has been collected erroneously, or where an impact fee has been paid, and the feepayer subsequently files for and is granted an exception as permitted in Section 30- 34, the fee shall be returned to the feepayer. (f) Annual report. A report shall be made to the Board of County Commissioners each year showing where public school impact fees have been collected, what projects have been constructed with such fees, and what reimbursements have been made. The report shall also include an evaluation of this Ordinance, including its effectiveness and enforcement, and the methods and data used to calculate the Schedule of Public School impact Fees contained in Section 30-33. The Board of County Commissioners shall review the report to determine if, within each benefit area, all areas of new construction are being benefited by the fees. If the Board of County Commissioners determines that areas of new construction are not being benefited, then it shall readjust the capital improvements program to correct this condition. If, after review of the methods and data used to calculate the Schedule of Public School Impact Fees, the Board of County Commissioners determines that adjustments are required in the Schedule, then it shall direct the County Manager and staff to prepare a report which outlines recommended changes for its consideration. (Ord. of 6-7-1993, § 5, eff 7-1-1993; Amend. of 6-5-1995, eff 7-1-1995; Amend. of 6-26-1996, eff 7-1-1996) Page 6 29 Sec. 30-36. -Credits. (a) Any conveyance of land for a public school site or construction of new school facilities received and accepted by Orange County, a municipality located in Orange County, and/or the Orange County or Chapel Hill-Carrboro School Board from a landowner may, at the election of the landowner, be credited against the public school impact fee due if the conveyance or construction meets the same needs as the public school impact fee in providing new public school facilities. If the landowner elects to receive credit against the amount of the public school impact fee due for such conveyance or construction, the landowner shall, prior to the agreement to convey land for or construct new public school facilities, or the conveyance of land for or construction of new school facilities, enter into a fee agreement with the County. The fee agreement shall provide for the establishment of credits and payment of the fee in a specified manner and time, and shall, upon its execution by the landowner and the County, be binding upon the heirs and assigns of the landowner. (b) The value of land conveyed or facilities constructed by a landowner and accepted by the County, municipality or school board for purposes of this Section shall be determined by an appraisal based on the fair market value of the land or facilities as established by the County. Construction shall be in accordance with applicable County, municipal, school board, and State standards. Any land conveyed for credit under this Section shall be conveyed no later than the time at which public school impact fees are required to be paid. The portion of the public school impact fee represented by a credit for construction shall be deemed paid when the construction is completed and accepted for maintenance or when adequate security for the completion of the construction has been provided. (Ord. of 6-7-1993, § 6, eff 7-1-1993; Amend. of 6-26-1996, eff 7-1-1996) Sec. 30-37. - Penalties. (a) In addition to any other remedy allowed by N.C. General Statute 153A-123, the failure to pay a public school impact fee is hereby declared to subject the person responsible for payment of the public school impact fee to a civil penalty. The amount of the penalty shall be equal to the amount of the unpaid school impact fee, plus an interest charge of one-half percent (1/2%) per month compounded monthly and a service charge of one hundred dollars ($100.00). (b) The County may assess this penalty against the landowner whereon new construction has occurred without payment of the public school impact fee. However, no service charge will be assessed when the County staff has made an error in the fee determination. Furthermore, no penalty shall be assessed until the person or persons alleged to be in violation are served by registered mail, certified mail - return receipt requested, or personal service with notice to pay. (c) The County Attorney is hereby authorized to institute a civil action in the name of Orange County in the appropriate division of the General Court of Justice in Orange County for recovery of the penalty. All moneys recovered shall be deposited in the appropriate trust fund. (Ord. of 6-7-1993, § 7, eff 7-1-1993) Sec. 30-38. - Legal status provisions. (a) All ordinances and clauses in conflict herewith are hereby repealed to the extent of said conflict. If any clause or Section of this Ordinance or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or application of this ordinance which can be given separate effect, and, to this end, the provisions of this Ordinance are declared to be severable. I (b) This Ordinance shall not diminish any prior contractual, conditional zoning, or special or conditional use district zoning obligation to pay for or install road, park or other improvements required by Orange County or a municipality located therein, nor shall the fulfillment of those obligations diminish Page 7 30 any applicable public school impact fee owed to the County. This Ordinance shall not diminish any prior obligation of the County or a municipality located therein to reimburse persons for road, parks or other improvements, nor shall the fulfillment of those obligations by the County or a municipality diminish any applicable credit owed to the feepayer. (Ord. of 6-7-1993, § 8, eff 7-1-1993) Secs. 30-39-30-70. -Appeal to the Orange County Board of Adjustment [Reserved]. Sec. 30-80. - Effective date. This Ordinance shall be effective from and after the 1st day of July, 1993. This Ordinance shall only apply to residential dwelling units for which building permits are issued on and after the effective date of the Ordinance or any amendment thereto. (Ord. of 6-7-1993, eff 6-7-1993) Page 8 31 Attachment 4 The e-mail below is from members of the stakeholder group staff met with on October 26. Staff responses are in red text after each comment. A proposal for your consideration Aaron Nelson <anelson@carolinachamber.org> = Tue 11/112016 5:40 PM - Perdita Holt - Travis Myren; Holly Fraccaro; Craig Benedict jrogers©triangleaptassn.org Travis, Craig and Perdita, With respect to the Board of Commissioners and County Planning Staff and through a collaborative effort with the Triangle Apartment Association, Homebuilder's Association of Durham Orange and Chatham Counties, and the Chapel Hill-Carrboro Chapel Hill Chamber of Commerce,we would like to provide you with an alternative option to what has been presented so far regarding amending the school impact fee ordinance. The additional option (or modification of existing options) would all of the following (we trust you to create the property legal/zoning language to achieve these objectives): • We support grandfathering (grandmothering) projects. o Projects with an approved Zoning Compliance Permits issued prior to 1/1/2017 will have the option to pay the either the 2016 or 2017 fees, and Projects that are currently in the development approval process have been planned and potentially financed based on current fee assumptions. If these projects were allowed to pay the existing fee, the projects could continue through development without altering the existing building or financing plan. The language in Attachments 2 and 3 has been modified to allow applicants who have an approved Zoning Compliance Permit by January 1, 2017 to pay the existing (2016) impact fee as long as a building permit application is accepted within one (1) year and a permit is issued within 180 days of the accepted permit application. o Any projects that submits and has their building permits formally accepted prior to 1/1/2017 shall have the option to pay the 2016 or 2017 fees, provided a permit is received within 180 days of application for building permit; and This concept was part of the materials presented at the October 18 BOCC meeting except that the number of days between applying for a building permit and receiving a building permit was 120 days. Town of Chapel Hill staff reported that most building permits, even for multi-family projects, are issued within 30 days of application submittal, if the submitted plans are done well and comply with building codes. However, some cases may result 32 in longer approval time if the plans need revisions/resubmittals. Because this concern has been expressed by parties that are directly affected by this provision, language has been modified in both Attachments 2 and 3 to increase the number of days to 180. o Going forward, a receipt of a ZCP or who have an `accepted'building permit application will be able to pay that year's fees. Following the initial year of implementation, developers should be able to plan for scheduled impact fee increases. This modification would represent a departure from current policy. • We support using the 50/50 basis and starting at 37% MSIF. The current revenue neutral projection is 43% of the maximum supportable impact fee based on 75% of new multi-family units in the zero to two bedroom category and 25% in the three bedroom or more category. This bedroom distribution was chosen because it is more likely to reflect actual construction. If the projection formula is revised to have an equal distribution of bedroom counts, the projection model would produce more revenue from the three or more bedroom units. If that number of units did not materialize, the amount of total revenue collected would be less than current collections. As a result, a higher fee would be needed across all housing types to produce a revenue neutral position. • We support spreading any increase of fees over five (5) years instead of three years. The BOCC may choose to spread the increases out over a greater number of years. Three years is currently suggested in the Ordinances in Attachments 2 and 3. If a five year implementation timeframe is used, it would also delay an update to the impact fee study for two years that would potentially capture more recent changes to housing choices and student generation rates. If the BOCC chooses to extend the implementation period,the Board would also need to determine the rate at which fees would increase during that timeframe. • We support an annual fee increase related to projected cost of construction increases, rather than an effort to achieve some arbitrary percent of MSIF. As the County Attorney has advised, impact fees must be tied to legally defensible data, which serve as the basis of the impact fee studies. Actual school construction costs are one of the components of the formula that calculates the MSIF; however, tying increases to projected cost of construction is not included in the analysis. The purpose of the impact fee is for new residential growth to pay for public costs associated with population growth. An amount less than 100% of the MSIF means that revenues to pay for additional school capacity must be funded through other means, likely property taxes,which is a policy decision made by the Board. 33 o We propose a 5% annual increase in fee cost each year (not 5 percentage points of MSIF) For the purposes of providing an example,this table illustrates the fee amounts over a period of 3 years, beginning at 43% of the MSIF, for multi- family units in the CHCCS district if the fee increases by 5 percent each year: Multifamily Bedrooms 43% MSIF +5% + additional 5% (year 1) (year 2) (year 3) 0-2 $1,910 $2,005 $2,105 3+ $8,133 $8,540 $8,967 This table shows the fee amounts over a period of 3 years beginning at 43% of the MSIF, for multi-family units in the CHCCS district if the fee increases by 5 percentage points of the MSIF each year: Multifamily Bedrooms 43% MSIF 48% MSIF 53% MSIF (year 1) (year 2) (year 3) 0-2 $1,910 $2,132 $2,354 3+ $8,133 $9,079 $10,024 The BOCC could potentially choose to increase the fees by a certain percent each year, using a specific MSIF percentage of the 2016 studies as the starting point. The method would have to be the same for all housing types within both school districts. Depending on the starting point chosen, the amount of impact fees collected could vary significantly between the two methods. Based on the 75/25 split for multi-family bedroom counts, and a starting point of 43% of the MSIF for all unit types, increasing the rates by 5% per year would result in $556,885 less revenue in Year 2 than increasing the fee by 10 percentage points of the maximum supportable amount(i.e., increasing from 43% to 53% of the MSIF for the first increase). o We encourage planning staff analyze the final percentage of MSIF for the final fee to be based on the anticipated construction costs). School construction costs are factored in to the MSIF calculation. The maximum allowable fee (100%) would represent the full cost recovery of new school construction. • We support giving developers and home builders the option to distribute the payment of school impact fees over five years, rather than to pay the fee prior to construction (and any project revenue). 34 Some of the stakeholders at the meeting on October 26 indicated paying the impact fee over time does not factor into their project decisions. Staff believes this is likely because project financing would include the impact fee since it's part of the total project cost. Paying over time would be a factor only for a person self-financing a project (e.g., paying for their project with their own cash). Paying the fee over time would represent a new administrative process that may require additional staff resources to track payments, issue payment reminders, and collect unpaid fees. If this idea were to be considered for implementation, Section 30-35(a) of the Ordinance would have to be modified as it requires payment of the impact fee prior to issuance of a Certificate of Occupancy. Additionally, language may need to be added to stipulate remedies the County could invoke in the event impact fees are not paid on designated due dates. These additional necessary modifications would delay adoption consideration by the BOCC as staff will need to craft appropriate language and have a solid plan on how best to implement a payment system. • We support pricing multifamily units less than 800 square feet similar to single family less than 800 square feet. The defensible data for the 2016 study was based on bedroom counts for multi- family units. As a result, the County does not have data that would inform a fee based on square footage. Size could be considered in an update to the impact fee studies in the future. o New multifamily communities have little impact on schools and units less than 800 sq. ft. are unlikely, now or in the future, to generate children for the school district. As is noted in the abstract, impact fees are paid once (at construction) and cover the entire life of the housing unit. Whether new multi-family units will generate public school students now or in the future remains to be seen. Future impact fee studies will capture the data at the time of the study and future impact fee levels will be charged accordingly. • We support the smaller fee for age restricted housing and expect the reduced fee to apply to both single family as well as multifamily units. The age-restricted housing fee applies to all types of units that meet the requirements for the fee. Respectfully submitted, Jacob, Holly and Aaron Connecting, Advocating, Promoting and Saving Members Money ,1a'.o r /Ve%so r President and CEO,Chapel Hill-Carrboro Chamber of Commerce Executive Director,Partnership for a Sustainable Community 35 104 S.Estes Drive I PO Box 2897 Chapel Hill,NC 27515 Direct:(919)967-7077 Cell:(919)260-0981 www.carolinachamber.org Thank You to Our Community Champions y-y � NT tilt ,T 1 I rI CHAPEL.{A IOLI MA UN IC + •I �+ • 141�x•I:rti�x ISIurSl�irld I 1 N CIIJ VLL 1111E 1[LhLT11 CAIiE of%nrlIi Cam!Ina